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Constraints in the Market Chains for Export of Sudanese Sheep and Sheep Meat to the Middle East

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Constraints in the Market Chains for Export of Sudanese Sheep and Sheep Meat to the Middle East View metadata, citation and similar papers at core.ac.uk brought to you by CORE ILRI provided by CGSpace International Livestock Research Institute Research Report 16 Constraints in the market chains for export of Sudanese sheep and sheep meat to the Middle East ISBN 92–9146–195–4 Constraints in the market chains for export of Sudanese sheep and sheep meat to the Middle East Omar Hassan el Dirani, Mohammad A Jabbar and Babiker Idris Babiker Ministry of Animal Resources and Fisheries ILRI International Livestock Research Institute INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE i Authors’ affiliations Omar Hassan el Dirani, Ministry of Animal Resources and Fisheries, Government of Sudan, Khartoum, the Sudan Mohammad A Jabbar, International Livestock Research Institute (ILRI), Nairobi, Kenya Babiker Idris Babiker, Department of Agricultural Economics, University of Khartoum, Khartoum, the Sudan © 2009 ILRI (International Livestock Research Institute). All rights reserved. Parts of this publication may be reproduced for non-commercial use provided that such reproduction shall be subject to acknowledgement of ILRI as holder of copyright. Editing, design and layout—ILRI Publications Unit, Addis Ababa, Ethiopia. ISBN 92–9146–195–4 Correct citation: el Dirani OH, Jabbar MA and Babiker IB. 2009. Constraints in the market chains for export of Sudanese sheep and sheep meat to the Middle East. Research Report 16. Department of Agricultural Economics, University of Khartoum, Khartoum, the Sudan, and ILRI (International Livestock Research Institute), Nairobi, Kenya. 93 pp. ii Table of Contents List of Tables iv List of Figures vii Acknowledgements viii A note on the Sudanese unit of currency ix Executive summary 1 1 Introduction 8 2 Methodology 12 2.1 Study framework and sources of data 12 2.2 Description of the study areas 15 2.3 Data collection and analysis 17 3 Quality assurance system for export of live sheep and sheep meat 18 3.1 Quality requirements of importing countries 18 3.2 Institutional infrastructure supporting livestock production and trade 20 3.3 Supply chains for live sheep and sheep meat 23 3.4 Physical movement of traded sheep from producers to market outlets 33 3.5 Quality and safety assurance system for export trade 34 4 Structure and performance of domestic and export markets for live sheep and sheep meat 58 4.1 Domestic markets 58 4.2 Export markets 65 4.3 Spatial price integration 73 References 78 Appendix 1 Local names of the important diseases/conditions reported by livestock producers in the survey areas 80 Appendix 2 Monthly sales volume and prices of adult male sheep in Omdurman market, Khartoum 81 Appendix 3 Monthly sales volume and prices of adult male sheep in el Obeid livestock market, North Kordofan 82 Appendix 4 Monthly sales volume and prices of adult male sheep in el Damazeen livestock market, Blue Nile State 83 iii List of Tables Table 1. Sudanese exports of live sheep, mutton and lamb between 2002 and 2006 9 Table 2. Average prices of live sheep and sheep meat and market shares of selected exporting countries in 2004 10 Table 3. Breakdown of sample sizes of units in the three surveyed states 16 Table 4. Human population and livestock densities in three states of Sudan 16 Table 5. Regulations governing the duration between slaughter and import, storage temperatures and shelf life for meat exported to Saudi Arabia 19 Table 6. Household and flock characteristics in Blue Nile, Gedarif and West Kordofan states 25 Table 7. Estimated coefficients and related statistics for equations explaining sales of sheep and goats 26 Table 8. Number of animals traded and specialization of traders in the primary and secondary markets in three states of Sudan 28 Table 9. Livestock market actors and functions by type of market in the Sudan 33 Table 10. Quality indicators of Sudanese live sheep and sheep meat for export 37 Table 11. Dominant sheep breeds (or types) in three states of Sudan 37 Table 12. Crude case fatality rates for diseases reported by household respondents in Sudan as important during 2003–05 40 Table 13 Proportion of sample households in Sudan according to use of veterinary services from different sources during the year prior to the survey 41 Table 14. Average distance and travel time to neatest veterinary facilities from households/flocks in the three states of Sudan 42 Table 15. Value of losses per household per year (2003–05) due to livestock diseases in Sudan 43 Table 16. Estimated coefficients of variable explaining level of expenditure on veterinary services and drugs in the three states of Sudan (using GLM procedure in SPSS) 44 Table 17. Distribution of traders according to health, safety and quality criteria they consider at primary and secondary markets in Sudan when purchasing sheep and goats, especially for export market 45 Table 18. Rank of most common diseases for which animals were barred by veterinary inspectors from selling at the primary and secondary markets in the three states of Sudan as reported by traders 45 Table 19. Preferred sheep weight by traders for their purchases (in kg carcass wt) in primary and secondary markets in three states of Sudan 46 iv Table 20. Inspection and selection criteria for quality assurance and certification of Sudanese sheep exports at different points in the export chain 48 Table 21. Number of sheep rejected at various points in the export chains for Sudan, 1997-2005 54 Table 22. Rejection rate of sheep according to cause at el Khowei and el Rahad quarantine centres in North Kordofan Sudan, 2002–05 55 Table 23. Percentage of inspected sheep rejected for various reasons by breed at the el Khowei inspection and vaccination centre in Sudan 56 Table 24. Number of sheep tested for Brucellosis monthly at el Obeid laboratory coming from el Khowei and el Rahad quarantine centres in Sudan, and rate of rejection, 2002 to 2006 56 Table 25. Percentage of tested sheep rejected for various reasons at the Port Sudan Veterinary Quarantine, 2002 to 2006 57 Table 26. Sources of finance of traders in three states of Sudan when business was started by market type 59 Table 27. Distribution of traders in three states according to sources of information in primary and secondary markets on prices, supply, and demand condition of purchase markets 60 Table 28. Distribution of traders in three states of Sudan according to main sources of information in primary and secondary markets on taxes, regulations and other government policies 60 Table 29. Average purchase and sale prices per animal by type of animal at primary and secondary markets in the three states of Sudan (in Sudanese Dinars) 63 Table 30. Number and composition of sheep transacted at selected primary and secondary markets by sample traders in three states of Sudan 64 Table 31. Major marketing problems as perceived by traders in primary and secondary markets in the three States of Sudan 65 Table 32. Number of Sudanese live sheep exporters and number of animals exported, 2003–06 66 Table 33. Marketing costs and margins for export live sheep (average live weight 45 kg) originating in selected markets in three states of Sudan (SD/head), June 2005 67 Table 34. Marketing costs and margins of light weight export quality lamb (average 25 kg live weight or 12 kg caracass weight) originating in selected markets in three states to export port, June 2005 68 Table 35. Marketing cost per head (in SD) of live sheep from production areas to the export port in Sudan for two export companies in 2006 69 v Table 36. Marketing costs and margins per head for live sheep and meat export from Gedarif State in Sudan (May 2005) 70 Table 37. Estimated cost and margins of heavy weight (average 45 kg live weight) sheep from el Khowei market in West Kordofan in Sudan to Jeddah via Port Sudan (June 2005) 71 Table 38. Estimated statistics for unit root test for prices movement and three estates in Sudan 75 Table 39. Johansen’s co-integration test results for number of co-integrated vectors for prices in three livestock markets in Sudan 75 vi List of Figures Figure 1. Major constraints along the Sudanese sheep and sheep meat marketing chain 4 Figure 2. Major breeds of sheep for export and their production areas in Sudan 8 Figure 3. Market chain framework to analyse constraints for sheep export 12 Figure 4. Domestic, cross-border and official export trade routes for Sudanese livestock 24 Figure 5. A general schematic diagram of the sheep and goat market chain in Sudan 29 Figure 6. Sheep marketing channels in Gedarif state 30 Figure 7. Sheep marketing channels in Blue Nile state 31 Figure 8. Sheep marketing channels in West Kordofan state 31 Figure 9. Quality assurance activities in the Sudanese live sheep export chain 34 Figure 10. Quality assurance activities in the Sudanese lamb export chain 35 Figure 11. Incidence of major diseases in three states of Sudan, 2003-2005 39 Figure 12. Seasonal incidence of major diseases in three states of Sudan, 2006 40 Figure 13. Monthly live sheep exports from Sudan (2004) 47 Figures 14–19. Impulse response functions for price shocks in the selected markets 76–77 vii Acknowledgements The authors are grateful to Drs Ahmed Mostafa Hassan and Bashir Taha, Undersecretaries in Sudan’s Ministry of Animal Resources and Fisheries (MARF) during 2004–06 and 2007–08, respectively, under whose overall supervision the research project was implemented. The authors are grateful to the International Fund for Agricultural Development (IFAD) and the International Livestock Research Institute (ILRI) for funding the study. The authors
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